Social Investment Wholesale Bank

The Social Investment Wholesale Bank is a proposed financial institution in the UK. The creation of a Social Investment Bank was a key recommendation of the Commission on Unclaimed Assets, led by Sir Ronald Cohen.

History

The Commission on Unclaimed Assets was established in October 2005 to study how funds released from dormant bank accounts[1] could be used to generate the maximum public benefit.[2] In a consultation paper published in July 2006 it recommended the establishment of a Social Investment Wholesale Bank.[3]

The Commission’s final report The Social Investment Bank - Its organisation and role in driving development of the third sector, published in March 2007, concluded that: ‘the third sector urgently needs greater investment and professional support and suitable capital should be available for organisations at all stages of development.’[4]

In July 2009, The Office of the Third Sector in the United Kingdom Cabinet Office published Social Investment Wholesale Bank: a consultation on the functions and design.[5]

Support

The idea of a Social Investment Wholesale Bank has generated significant interest from across the political spectrum.[6] On March 31, 2010, David Cameron announced that a Conservative government would set up a "Big Society Bank" funded by unclaimed bank assets.[7] A Conservative policy document said the proposed Big Society Bank would not be restricted to lending but would also invest in innovative products such as Social impact bonds.[8]

Features


Social Investment Wholesale Bank: a consultation on the functions and design (2009) set out the possible role of the institution.

‘As a wholesaler of social investment, it would support the long-term growth of a thriving third sector by working with investors and lenders at the ‘retail’ level. For example, it could:

  • finance Charity Bank’s expansion into new areas which mainstream markets do not reach;
  • support a grant-making trust interested in investing in social enterprises; or
  • provide financial backing to a social enterprise lender (i.e. a credit union) offering fair finance to people unable to access affordable credit.[5]

Notes

  1. ↑ Unclaimed assets or dormant accounts are bank and building society accounts where there has been no customer-initiated activity for 15 years. In 2008, the UK Government introduced legislation to enable unclaimed money in dormant bank accounts to be used for youth facilities, financial inclusion and social investment.
  2. ↑ "Commission on Unclaimed Assets". socialfinance.org.uk. Archived from the original on September 1, 2010. Retrieved 20 September 2015.
  3. ↑ The Commission on Unclaimed Assets (2006) A Social Investment Bank - Consultation Paper
  4. ↑ The Commission on Unclaimed Assets (2007) The Social Investment Bank - Its organisation and role in driving development of the third sector
  5. 1 2 Office of the Third Sector (2009), Social Investment Wholesale Bank: a consultation on the functions and design
  6. ↑ Labour http://www.labour.org.uk/policies/civil-society-and-the-third-sector
  7. ↑ Financial Tines:Cameron outlines ‘big society’ plans http://www.ft.com/cms/s/0/5603c0d4-3ccb-11df-89ca-00144feabdc0.html
  8. ↑ "Share The Facts". Conservatives.com. Archived from the original on November 17, 2013. Retrieved 2015-09-07.

External links

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